This Market Keeps Punching
If you were not already long the Momentum-5 leader, September beans
(
SU1 |
Quote |
Chart |
News |
PowerRating), there was an opportunity for a play again this morning using an Off The Blocks entry. Beans gapped open, and then cleared the opening range to trigger the OBT entry and trade to within firing range of year-to-date highs. This is the third day in seven that beans have rallied 10 or more cents.
This morning’s Pre-Opening Futures Market Outlook pointed out that momentum buying has trader (fund) buying in the past week with a net long position of 23,200 contracts, up 19,711 in just one week. Heavy fund buying in the early to mid-stages of a rally are generally considered bullish.
Dry weather during a critical growth phase for the crop as well as reduced planting and a lower grain carryover are also enhancing the bullish case in the grain.
Soymeal
(
SMU1 |
Quote |
Chart |
News |
PowerRating), another Momentum-5 market, also rallied and approached year-to-date highs, but left a topping pattern on the five-minute bar chart.
Natural gas had its biggest volume of the nearby contract month yesterday in a very narrow range. The volatility compression and volume expansion resolved to the upside. Nat gas has been very oversold and had already achieved measured-move downside objectives from the spring highs (implying a reaction rally could be in order). Nat gas’s 4%, or 1.32, move to 3.285 is its biggest in a month.
In the meats, hogs
(
LHQ1 |
Quote |
Chart |
News |
PowerRating) tumbled from their recent parabolic heights. Pork bellies
(
PBQ1 |
Quote |
Chart |
News |
PowerRating) also ended lower off double tops.